The State Government now seems to have withdrawn the contract of privatisation of electricity supply. Essel Power ltd Company, that was earlier given contract, is on back foot due to its false commitment.
Electricity department has started to seize the `42 crore performance deposit of Essel Company. This amount is deposited in Axis Bank of Mumbai Branch. Electricity department has sent a request through letter to the Axis Bank to transfer the amount in Electricity department account.
Along with the letter, so many documents were presented to the bank which clearly shows that according to the norms, Essel Company has not taken over the responsibility to streamline the supply of electricity.
Double Bench of High Court had given the Company deadline of November 10 to take over the electricity supply of the city.
High Court has ordered to Essel to resolve all the matters before taking over the work and organise a meeting with CMD of Electricity department.
The meeting was held with the CMD but it was not fruitful. On November 10, when the Electricity officers went to Essel Company Office, they refused to take over the work.
The Essel Company has demanded 50 per cent electricity from MPSEB and the balance 50 per cent from other electricity companies. This demand was treated wrong according to the Electricity department as company is saying that Essel company has to buy the electricity from them.
It is not possible to buy the electricity from another company and then supply. The electricity company, which is using the software now, should upload their data in another software.
Though the Electricity department has changed the software, the Essel company has blamed that the department has not provided the data.
Arun Sharma, City GM, MPSEB has informed that the court has ordered for Essel Company to take over of Supply of Electricity by 10th of November but like the past, they have not taken over by the date. The letter was sent to Axis Bank Mumbai to transfer `42crore, the performance guarantee money as they have broken the clause.